Media Regulation in China and Its Impact on Foreign Companies

The key starting point of any discussion of media regulation in China is the fact that the government in Beijing remains firmly in charge of market. The government's objective is to maintain control of content and, by extension, all forms of media; print, broadcast and Internet. Consequently, online media tends to get the most attention due to the fact it is newer and harder to control.

The government has made some changes to loosen its grip in some sectors of the market, most notably events and advertising sales. This is partly due to China's commitments in advance of its entry into the World Trade Organisation (WTO) in 2001. There is, however, still no commitment to open up media ownership in China and no sign of one in the near to medium term future. Despite this key restriction, advertising, event organising and media distribution operations can now be owned up to 100% by foreign enterprises.

Due to the regulatory environment in China's media industry, the following table outlines which activities are permitted and which are forbidden to foreign publishers.